New York: The US economy remains resilient despite a slowdown in growth, according to Marc Giannoni, Chief US Economist at Barclays. The US Federal Reserve is expected to implement three rate cuts of 25 basis points each this year, starting in September, with additional cuts planned for November and December, according to him.
Talking to CNBC TV18, Giannoni added that equities will likely benefit from slightly lower rates and resilient growth. He also expressed confidence that the economy will avoid a recession and gradually slow down to a long-term steady growth path, aligning with the Fed's efforts to achieve a soft landing.
According to him, Fed chair Jerome Powell is expected to deliver a significant speech at the Jackson Hole Symposium.
“We strongly doubt he will make any policy commitment like we think he will likely reiterate; the decisions are going to be data dependent, they are also going to be made on a meeting-by-meeting basis, but we also think that Powell will mention that the Federal Open Market Committee (FOMC) is prepared to respond forcefully if the labour market were to unexpectedly weaken,” Giannoni was quoted as saying.
